Unemployment
Circular Flow
Market structure
Inflation
GDP
100
Damian a recent high school graduate has never searched for a job before. He does not know what he is qualified to do. He turns down a job at a factory, hoping for better-paying work.
What kind of unemployment is he experiencing?
frictional
100
What is the Consumer Price Index (CPI) best used to determine?
the inflation rate.
100
When does a recession is said to occur?
When real GDP declines for six months in a row.
100
What is inflation?
increase in the general price level
100
Which macroeconomic goal does Real GDP measure?
a. Economic Growth
b. Full Employment
c. Price Stability
d. Economic Efficiency
Economic Growth
200
Which is the following is the best example of structural unemployment?
A lot of cashiers have lost their jobs due to self checkout lanes.
200
Which market structure does this best illustrate when there are many sellers, and product differentiation?
Monopolistic competition
200
"Dayo decided to quit his job as a computer programmer and open a sneakers store. He sold his computer stock, borrowed additional financial capital from his parents, rented a store and invested in machinery and other equipment."
Which business organization is Dayo store an example of?
sole proprietorship
200
What always follows immediately after a peak in the business cycle?
recession
200
When a country is experiencing a recession, what will happen to the unemployment rate and real GDP?
a. Unemployment increases; Real GDP decreases
b. Unemployment decreases; Real GDP increases
c. Unemployment increases; Real GDP increases
d. Unemployment decreases; Real GDP decreases
Unemployment decreases; Real GDP decreases
300
Which of the following groups would most likely benefit from unanticipated inflation?
Individuals who have borrowed money.
300
Which choice shows the stages of the business cycle in the correct order?
peak, recession, trough, expansion
300
What is said to be true about a rational economic decision?
Marginal benefits exceed marginal costs.
300
What does the list above indicate?
Determinants of demand
400
Frosty the snowman is expecting to be out of work shortly following the last big snow of the year. Which type of unemployment is Frosty the snowman facing?
seasonal unemployment
400
What does numbers 4&2 represent on the circular flow diagram?
Goods & services
400
Which business organization has the characteristics of the 1st row?
corporation
400
Felix has several things that he would like to do Friday, but he cannot do all of them. Felix chooses to go to the softball game. If he did not go to the softball game, he would go to work instead of going to the movies. What is Felix’s opportunity cost?
a. The softball game
b. The money from work
c. The movies
d. Everything else
The money from work
400
Which stage of the business cycle does the circled area represented?
a. recession
b. expansion
c. peak
d. trough
Expansion
500
What numbers indicate the voluntary exchange between the workers and their employer on the circular flow diagram?
6 and 7
500
Which market structure has the characteristics of the 3rd row?
oligopoly
500
What does number 8 and 6 represent on the circular flow diagram.
Payment for productive resources
500
What will be the result of if the price was set at P1?
a. Price ceiling; shortage
b. Price ceiling; surplus
c. Price floor; surplus
d. Price floor; shortage
Price floor; surplus